Trading Allowance for Pensioner

Burt1990

Hi All,

I have a small business and am finding it difficult to keep up with the admin. My mum is retired and on state pension and has offered to do some casual work for me, filing and paperwork etc when needed. This will only be for the odd few hours and I can't see it exceeding more than £50 a month. As this will be within the trading allowance (under £1000 per year) I don't believe that she is required to report this to anyone/anywhere. She is concerned that it might affect her state pension. Can't see anything on HMRC and would just like to clarify this before we go ahead with this as she is a worrier :-)
Many thanks

Dazed_and_C0nfused

Why do you think the trading allowance would apply?

Cousin she send someone else to do the work if she wanted to?

Sounds like an employee.  But not one that would necessarily require you to operate PAYE 

Burt1990

Thought it would come under casual work/misc. income "From 6 April 2017 receipts from self-employment and miscellaneous income of £1,000 or less are exempt from tax and do not need to be reported on a tax return"

Yes, she could send someone else in to do it.

Even if I was to put her on PAYE for this, would it affect her state pension?

Dazed_and_C0nfused

State Pension isn't means tested so no it wouldn't affect how much State Pension DWP pay her.

greatkingrat

If her only income is state pension then there should be more than enough headroom to earn an extra £1000 without going over the personal allowance and having to pay any tax.

Jeremy535897

If you employ anyone else (and what you describe is employment), you should put her on the payroll, but no tax should be deducted on these figures. If you don't employ anyone, you don't need to start a payroll just for her as she would be earning well below the lower earnings limit. Having said that, where there is a close family relationship, I question whether this is more her doing you a favour than actually employment (and you also get into minimum wage territory if you are not careful).